CIBIL-Credit card or Loan Application Rejected?

All your financials transactions for credit card and loan are being tracked by somebody and it may create bigger problems for you if you cannot handle it well today. 

What if one bank rejects your next credit card application, car loan application or home loan application? What if all banks reject all such home loan application? You can ignore credit card or car loan application but you cannot afford to home without loan now a days. 

Now you will think what is the reason each and every bank denies your loan application? There could be silly reason like you would not paid your credit card bills on time. You would have paid loan installment late for previous loan application. You would closed your credit card without clearing your last statement or without paying the interest amount. These kinds of actions might have happened before 2-3 years but you are denied loan today.

All these kinds of financial transactions are now recorded by organization called CIBIL - Credit Information Bureau India Limited which was formed by most of the Indian banks.

How does CIBIL works?
All participant banks send’s credit history of each and every investor with information like payment made on time for credit card or loan installment, any default you made in the bank on monthly basis. CIBIL compiles the data from each bank and prepares the CIBIL credit  information report for everybody based on Name, Address, PAN Card No and DOB.

How does bank reject your loan or credit card application?
When you apply for any of loan or credit card, Banks first get your credit information report (CIR) from CIBIL and evaluate your credit history and if you are not meeting their guideline for credit history then your application will be rejected. They will not even update the correct of reason for rejection. So you will be wondering why your application is getting rejected from many banks.

What kinds of information credit information report (CIR) have?
CIR contains investor ‘s person details like name, different addresses, contact numbers, passport no, PAN card no and active and inactive credit cards information, amount overdue, past payment record, suit filed status and etc.
Sample copy of CIR can downloaded here

How should I get my credit information report (CIR) from CIBIL?
You can get your credit information report (CIR)  from CIBIL website - by paying Rs 142. You will get your report  in 2-3 weeks from the CIBIL Mumbai office. You can review your own credit history.

What should I do to rectify information in CIR if you name is in default list?
This is little difficult task to do. Based on your credit information report, you can contact respective bank to clear your dues then ask them send your correct details to CIBIL to update the record. So if everything goes well then within 2 months your Credit information report will be updated. Please make sure you have written documentation when you clear or settle the payment with the bank.

So, please be aware about the bigger impact of credit history in future and make your payment on time. Don’t hold more credit card unnecessary. Clear all dues and cancel your credit card.
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